Hong Kong Gains, Auto Shares Fall On The Mainland

Shares rose in Hong Kong Wednesday morning after a four-day sell-off, with investors cheered by easing trade and Syria tensions, while stellar US earnings also boosted confidence in the reporting season.

The Hang Seng Index added 0.3 percent, to 30,146 by the break.

On the mainland, the markets gave up early gains as local automakers took big hits.

Beijing's announcement on Tuesday of a timeline for opening up its auto sector saw investors dumping shares of mainland car companies.

Baic was hammered more than 10 percent, Dongfeng losing 5 percent and Brilliance China was off 7.5 percent.

The benchmark Shanghai Composite Index was down 0.4 percent, to 3,055 by noon break, while the Shenzhen Composite Index fell 0.8 percent, to 1,771.

Most other Asian markets climbed. Seoul surged more than 1 percent and the won was also up as it emerged the US and North Korea had held "talks at the highest levels" as part of efforts to line up a summit between Donald Trump and Kim Jong-un in coming weeks.

Sydney advanced 0.3 percent and by the break Tokyo was 1.3 percent higher.

Singapore gained 0.9 percent, while Wellington, Taipei, Manila and Jakarta all climbed,

Stephen Innes, head of Asia-Pacific trade at Oanda, said the markets were enjoying "a breath of fresh air as traders turn focus to data and corporate profits" though he warned they "remain cautious knowing stock markets are only one presidential tweet away from upsetting the apple cart". (AFP)

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